Voidable Transactions Essay Example | Topics and Well Written Essays - 2250 words

Voidable Transactions - Essay Example Thus voidable transactions in general and unfair preferences in particular which are highly technical areas of insolvency legislation presuppose that there is the likelihood that individuals and businesses might become insolvent prior to formal declaration of their insolvency.2 The features that make a transaction voidable are described under Section 588 FE. This section covers all the transactions entered into on or after 23rd June 1993. Section 9 of the Act defines the term 'transaction' as one to which the 'body corporate' is a party. The transactions may include a conveyance, transfer or other disposition and a charge created or guarantee created by the body corporate. It also includes an obligation on the party of the body corporate or a release or waiver granted by the company. The term further extends to a loan extended by the body. The conditions under which a transaction becomes a voidable transaction are enumerated under Section 588 FE (2). ... Such transactions or acts done at any time after that day but on or before the day when the process of winding up began will also be treated as voidable transactions. The time period of six months is being extended to 10 years ending on the relation-back date in cases where the insolvent transaction has the effect of defeating, delaying or interfering with the rights of creditors of the company. Thus an insolvent transaction of a company entered in to during 10 years ending on the relation-back day would be considered voidable if the transaction was entered into with the specific intention of hindering the rights of the creditors of the company. Section 588FE (4) makes an insolvent transaction voidable when a related entity of the company is a party to such transaction. This Section extends the time period covering the transaction for a period of 4 years ending on the relation-back day. Under Section 588 FG a person against whom the liquidator proceeds for voidable transaction is eligible for some defenses which are available under that section. A party to a transaction will be able to defend the allegation that the transaction is voidable under the following circumstances; (i) when the party has become a party to the transaction in good faith (ii) he had no reasonable ground at the time of entering into the transaction to suspect that the company is insolvent or would potentially become insolvent (iii) there would arise no suspicion for any reasonable person and (iv) the party has made good the company with valuable consideration or altered his position based on the transaction. The party defending the voidable transaction should be able to prove all or any of these conditions to the satisfaction of the court. It was

Case Study Report Essay Example | Topics and Well Written Essays - 2000 words

Case Study Report - Essay Example alue of the Napster brand, and our revenues could suffer if we are not able to maintain its high level of recognition in the digital music sector and c) We may not successfully develop new products and services† (Napster, 2010). These have been chosen from the list as provided in the case. A set of recommendations have been set out for the company based on the above mentioned risks. Firstly, to improve the customer retention and to use churn models along with customer relationship marketing to reduce the customer attrition to a great extent. Secondly, it is advisable that the company considers a brand extension to be able to keep up their market position and brand image. Napster has brought about a new brand and a very useful programme for friends and family to share music online in a simpler and effective manner. The company was started in 1998 and 1999 by a young Shawn Fanning and the system was then known as Peer to Peer. Although the company only operates within United States, the company was a big hit among the customers and there was a clear interest in people across the world as this was a very effective way of sharing music online. However, the success of the company was short lived and the company was faced with a number of lawsuits by the recording companies and others. The main aim of this paper however is to focus on the marketing techniques and marketing mix of the company and to assess the company’s marketing mix. The paper will deal with each of the 7 P’s of marketing and will evaluate the company’s performance based on the same. Also the paper will develop strategies for the company to be able to deal with the perceived risks and will help provide recommendations to the company. The next section will deal with the evaluation of the marketing mix used by the company. The aim of this section is to discuss the 7 P’s of marketing and the position of Napster in the markets based on the 7 Ps. The section provides a clear analysis of the